The price might go down now, but it's not worth it. It will still take a while for the feds to sell, in the meantime the price will go back up, and then yo-yo. But really the people who will buy these coins aren't going to be dumping them on the market. They are buying to keep the supply controlled and the price high. :-)
It doesn't matter
when they do it. Right now is when we have the knowledge that they
will do it. Although there is some question about how much. It will definitely be 29,655BTC, but it could possibly be as much as 144,336BTC.
It's getting priced in right now.
It's being auctioned, this is not the reason for current movement.
New Knowledge is always a reason for current movement.
It clearly is not. You claiming this proves your ignorance.
It only proves how important this is to the market, but it will take a day to filter in. And another three days for the reactions to the movement to settle out.
Also currently price may be dropping a bit from Overstock, small influence though.
There is still some wealth effect from the rise at end of 2013.
This o.co overhang will begin to reverse when
1) Overstock takes advantage of BitPay's payroll feature and begins to allow its people to also be paid in bitcoin at a percentage of their compensation.
2) Time. When folks are buying their bitcoin off an exchange to use on overstock instead of using the ones they already have.
3) Supply chain, when Overstock is able to purchase its inventory in bitcoin.
